Correlation Between BNP Paribas and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and SPDR MSCI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BNP Paribas and SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas Easy and SPDR MSCI ACWI, you can compare the effects of market volatilities on BNP Paribas and SPDR MSCI and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BNP Paribas with a short position of SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and SPDR MSCI.
Diversification Opportunities for BNP Paribas and SPDR MSCI
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNP and SPDR is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and SPDR MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI ACWI and BNP Paribas is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BNP Paribas Easy are associated (or correlated) with SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI ACWI has no effect on the direction of BNP Paribas i.e., BNP Paribas and SPDR MSCI go up and down completely randomly.
Pair Corralation between BNP Paribas and SPDR MSCI
Assuming the 90 days trading horizon BNP Paribas Easy is expected to under-perform the SPDR MSCI. In addition to that, BNP Paribas is 1.53 times more volatile than SPDR MSCI ACWI. It trades about -0.04 of its total potential returns per unit of risk. SPDR MSCI ACWI is currently generating about 0.16 per unit of volatility. If you would invest 21,086 in SPDR MSCI ACWI on November 2, 2024 and sell it today you would earn a total of 2,572 from holding SPDR MSCI ACWI or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.06% |
| Values | Daily Returns |
BNP Paribas Easy vs. SPDR MSCI ACWI
Performance |
| Timeline |
| BNP Paribas Easy |
| SPDR MSCI ACWI |
BNP Paribas and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and SPDR MSCI
The main advantage of trading using opposite BNP Paribas and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, SPDR MSCI can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SPDR MSCI will offset losses from the drop in SPDR MSCI's long position.| BNP Paribas vs. Lyxor UCITS NASDAQ 100 | BNP Paribas vs. Lyxor UCITS Stoxx | BNP Paribas vs. Lyxor UCITS MSCI | BNP Paribas vs. Multi Units Luxembourg |
| SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR Barclays Cap | SPDR MSCI vs. SPDR SP 500 |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |